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Essays on the value-relevance of earnings expectations and the influence of disclosure policy on analyst behavior

Schaberl, Philipp D.
http://rave.ohiolink.edu/etdc/view?acc_num=ucin1337717709

Abstract Details

2012, PhD, University of Cincinnati, Business: Business Administration.
This dissertation consists of two essays. The first essay examines the proportional relevance of accounting data and so-called “other” information. The Ohlson (1995) model provides a representation of firm value in terms of accounting fundamentals and “other” forward-looking information (?t) not yet reflected in accounting numbers. Based on this framework, this paper proposes a measure of proportional relevance (R2%) to examine the relative weight that investors assign to accounting data vs. “other” information (?t). Using this metric, this study examines whether the mix of information used by investors changed over time, and whether there is there an association between the overall market conditions and the proportional relevance of accounting data and ?t.This study finds that the proportional relevance of “other” information increased substantially over the period 1984–2010. Moreover, the results suggest that investors rely more heavily on accounting data (“other” information) during bearish (bullish) years with high (low) levels of volatility in capital markets. Overall, the results reported in this study indicate that although “other” forward-looking information has gained in importance over time, investors still rely on accounting data as an anchor for valuation in difficult years. The second essay examines the influence of SFAS 131—a mandated change in segment disclosure—on the relation between corporate diversification and analyst behavior, as measured by analyst following and the precision of analysts’ information. Based on a sample of diversified and non-diversified firms, I compare the relation between corporate diversification and several aspects of analyst behavior across the old SFAS 14 and the new SFAS 131 segment reporting regime. Using the model developed by Barron, Kim, Lim, and Stevens (1998), I find that the previously positive (negative) relation between corporate diversification and analysts’ idiosyncratic information precision (consensus) is significantly negative (positive) under SFAS 131. Additionally, I find that the negative relation between corporate diversification and analyst following is even more pronounced (i.e. more negative) under SFAS 131. This study seeks to add to our understanding of the broader implications of SFAS 131 by comparing the relation between corporate diversification and several aspects of analyst behavior across the old and the new segment reporting regime for a broad sample of firms.
Pradyot Sen, PhD (Committee Chair)
Somnath Das, PhD (Committee Member)
Hui Guo, PhD (Committee Member)
Jens Stephan, PhD (Committee Member)
Yan Yu, PhD (Committee Member)
96 p.
Accounting
value-relevance; other information; crisis; trend; explanatory power; relevance;

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Citations

  • Schaberl, P. D. (2012). Essays on the value-relevance of earnings expectations and the influence of disclosure policy on analyst behavior [Doctoral dissertation, University of Cincinnati]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=ucin1337717709

    APA Style (7th edition)

  • Schaberl, Philipp. Essays on the value-relevance of earnings expectations and the influence of disclosure policy on analyst behavior. 2012. University of Cincinnati, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=ucin1337717709.

    MLA Style (8th edition)

  • Schaberl, Philipp. "Essays on the value-relevance of earnings expectations and the influence of disclosure policy on analyst behavior." Doctoral dissertation, University of Cincinnati, 2012. http://rave.ohiolink.edu/etdc/view?acc_num=ucin1337717709

    Chicago Manual of Style (17th edition)

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© 2012, all rights reserved.
This open access ETD is published by University of Cincinnati and OhioLINK.